IMF, Pakistan Agree to End Baggage and Gift Car Import Schemes

Islamabad: In an assessment report on governance and corruption, the IMF and Pakistan have reached a consensus that will eliminate baggage and gift schemes for car imports and tighten a third scheme for change of residence.

The import of five-year-old cars has been allowed in the commercial import of cars, but its conditions are strict and safety measures will be strict. The matter will be presented before the Economic Coordination Council and the Cabinet for approval.

A government official has said that the IMF has given a deadline. Till now, vehicles from Japan or Britain were first brought to Dubai and from there to Pakistan. Now steps will be taken to stop such imports. Negotiations between Pakistan and the IMF in this regard will be completed today.

According to inside sources, in view of the IMF corruption report, the task force has recommended that the Civil Servants Act 1973 be amended to make the assets of government employees in grades 17 to 22 and their families available to the public. The task force has also recommended amendments to the Election, NAB, and FIA Acts.

It has also been recommended that NAB and FIA officers be trained, that FIA investigation officers posted at airports be removed from immigration and their responsibility be given to another force, and that awareness campaigns be conducted.

These negotiations will take place upon completion of the second review of the $7 billion EFF facility and will result in the release of the first tranche of $400 million out of the $1.4 billion under the FSF facility.

The IMF has approved a deadline for ending two schemes and has asked for the matter to be presented to the Economic Coordination Council and the Cabinet regarding tightening the third scheme.

Under the (Tariff Balancing) Plan, it was agreed between the IMF and Pakistan that two schemes related to the import of vehicles—namely, Baggage Rules and the Gift Scheme—would be abolished.

The third scheme, called Transfer of Residence, will allow vehicles to be imported only from the country where the vehicle owner has resided for at least one year. Abuse of this scheme will also be restricted.